Please ensure Javascript is enabled for purposes of website accessibility

Why QuantumScape Stock Rose Double-Digits Today

By Howard Smith - Apr 1, 2021 at 11:31AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company announced another milestone that is bringing it a $100 million payout.

What happened

QuantumScape (QS -1.63%) shares jumped almost 20% Thursday morning after the company announced another milestone to keep it on track for commercializing its solid-state battery technology. The stock pared those gains somewhat, but as of 10:45 a.m. EDT, shares remained 11% higher on the day. 

So what

QuantumScape investor and partner Volkswagen (VWAGY -0.61%) will add $100 million to its investment in the solid-state battery maker after it met the necessary technical condition for the final payment of a previously announced agreement. 

arrow rising on bar chart indicating stock increasing

Image source: Getty Images.

Now what

The milestone the company achieved required Volkswagen to perform successful testing of the newest generation of lithium-metal cells in the automaker's German labs. Jagdeep Singh, co-founder and CEO of QuantumScape, said in a statement, "We are delighted to have met this technical milestone with Volkswagen, and we look forward to working jointly to bring solid-state lithium-metal battery technology into industrialized mass-production." 

The achievement comes after QuantumScape said earlier this year it has successfully built its first multilayer battery cell with four layers. This helps confirm the technology is feasible. The company now has plans to scale up the technology to have an eight- to 10-layer cell by the end of this year.

If successfully produced and commercialized, the technology could change the landscape for electric vehicle batteries. The solid-state lithium-metal technology is safer as it doesn't generate the heat of a lithium-ion battery, and it increases charging rate and performance. 

"Achievement of this milestone is an important step for QuantumScape and we look forward to receiving and testing subsequent generations of cells, with the goal of getting solid-state technology into series production," Frank Blome, head of Volkswagen's battery cell business unit, said in a statement.

Investors today are also looking forward to what could be ahead for QuantumScape.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

QuantumScape Corporation Stock Quote
QuantumScape Corporation
$12.10 (-1.63%) $0.20
Volkswagen Aktiengesellschaft Stock Quote
Volkswagen Aktiengesellschaft
$19.58 (-0.61%) $0.12

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/21/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.